Businessmen urge govt to stabilise exchange rate

Blame poor competitiveness, addiction to subsidies for declining exports

MULTAN: The business community of south Punjab has expressed its concern over the erosion in the currency exchange rate, terming it unacceptable to traders.

Multan Chamber of Commerce and Industry (MCCI) President Jalaluddin Roomi deplored the loss in the value of Pakistani rupee against the US dollar, despite remaining stable for over three years.

The US dollar’s value has surged to Rs107.25 in the open market in the past few weeks.



Roomi asked the departments concerned to take immediate steps to stabilise the exchange rate and take action against the elements who were trying to exploit the current political turmoil for profiteering.

He argued that rupee depreciation, an action being suggested by several analysts, would neither improve exports nor help authorities tackle the rising trade deficit.

“Export policies need to be enacted and strengthened to improve export competitiveness (and thereby increase exports) while leaving the exchange rate unchanged since it will damage public welfare by making imports costly and stoking inflation,” Roomi added.

The MCCI president pointed to the losses being suffered by the traders due to the current political situation, asking the authorities to prevent currency dealers from exploiting the trading community.



“The masses should not be made to pay the price for poor economic decision-making and failings of the export sector,” he emphasised.

“Our export sector has lost competitiveness due to lack of support and its addiction to subsidies, tax breaks, bailouts and currency devaluation,” he observed, predicting that the situation would force the next government to borrow as well, which would further hamper progress and prosperity.

Published in The Express Tribune, August 16^th, 2017.

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